7 Things trader must study before starting option trading in Sensex, Nifty, Niftybank in stock market

Option trading is not hard as you have seen, think and the way negative scenario has created about it on social networks like x, you tube and instagram, if you study it properly then it is best for you to make money otherwise it is more dangerous and can kill your hard earned money, savings or anything else which is your capital.

Listen carefully study means what?

Study means doing same thing again and again until you become master in it from all the side. So, as new comer or trader in share market you must study things properly even to the basic levels then and then it became profitable for your otherwise it becomes root cause for you loss

Let see which 7 things you/trader must study before starting option trading in Sensex, nifty and nifty bank in stock market

1. Option trading study: See and Observe market carefully

Log in to your broker from computer or mobile (if you are using mobile it’s good to start buy not further, go and buy basic configured computer or laptop might be second hand.) at 9:00 am and see what happens from then to 3:30 pm in afternoon.

See the preopen market and then see normal opening of market. How opens indexes flat or gap up or gap down or sideways and then observe it carefully for one hour and then how it go further and how trading happens with these movements.

See how market changes from a point to another points and how traders are trade them to take money this would be the key to make profit from changing market. Then see how market slows down or trading slow down for while see what happens there and keep that in mind. Then see again how market get direction or not and closes flat. These are the small-small things you have study carefully from market open to close because profitable option trading depends on and it can affects your trading in option.

2.See option chain and how it works

As you are familiar with market open the NSE website and open option chain and try to read the data from option chain initially it looks hard because lots of data running their at same time on screen so you would be confuse by looking its complexity but don’t worry you will be familiar with it if see it carefully and regularly.

See single thing at a time like strike and its price then See how it is presented in what scale same time read its meaning and try to understand it this the effective way of learning things fast. Like this see other things also and understand then like, volume, open interest, change in open interest, call option put option and their price. See it carefully every day and don’t go further without understanding a single things option trading depends on this option chain if you don’t learn it you never be successful in option for making money.

When you trade option you need to see option chain for things like, strike price, volume, open interest, call and put price and put to call ratio. So, if you want to successfully make money in option trading then learn the option chain and master it. Doesn’t matter the way, learn it by your way but learn it carefully.

3.Chart, Strategy and Planning

You should know the chart and how to read it otherwise it’s difficult for every trader to trade and take advantages of it. So learn the chart in details. Best way to learn details of chart is see them every day and try to read them with live market.

Open chart for index and observe it carefully every day. See for every detail and test them practically because market is live. try to understand every term like support level, resistance level, gap up and gap down, consolidation which is much important while trade because they decide your entry exit and loss ratio.

More you see the chart and take notes it become easier for you trace the chart and understand its direction in less time. Do this with every chart like index, stock, call and put option.

This process of watching charts carefully make you able to plan something about market and which you can test in live market next day and when you repeat this process again and again so, you make strategies which will face real market and they you become good in it to build good trading strategies for option.

Here you shouldn’t do things like don’t see other’s strategies and follow them blindly because they are their own and you don’t know how they built so the best way is to learn and make your own by planning.

4.Technical analysis

This is the most important things of any kind of trading and you must learn it. It is not hard but consistence practice can make you better at technical analysis. Trading technical analysis and if want be successful profitable trader then you must lean it otherwise it is very hard to get consistence success.

Technical analysis will tell you, what the market is and what direction it is going, how to test it and how to use different tools, indicators, oscillators and get the data for your trade. This analysis helps you to test how you see the market and think about it and how the market actually is, this is difference make better every time to trace market condition to make your trade successful.

Technical analysis helps to compare different data to go in the right direction and confirm your knowledge to take right decision.

5.Follow discipline for learning and live trading

You must follow discipline for learning live trading. If you want to learn it then do it for all 7 days, when market is on, market is off and Saturday and Sunday all the days and make notes.

If you have someone who is trading then sit with them and only see live trading with them but don’t make any conclusions and follow then just see them carefully while trading.

When you are familiar do it yourself in your trading account in paper trading mode and test what you have learned and seen. Practically testing is best to know you’re going in right direction or not. What is wrong and write .where to make changes and make your knowledge right.

6.Test your knowledge and skills

Testing is what when you do it practically then and then only know how you have learned, how you can do it and what is needed. Testing and practice makes better you better because lacking in one thing makes your loss. So earning knowledge is not sufficient for better profitable trading you must test your knowledge and required skills for trading and develop them as soon as possible. Simple systematic way is do it every day so it won’t consume you and built you effective.

Trading is not just learning when you think about to do, it’s more about practically doing and building skills. It’s not going to happen if you don’t build skills because you need immediate actions like placing buy and sell order, watching different chart on different screen at same time, collecting data and record it, read information and watch news channels. Operate computer fast because trading is serious job if you wrong you lose money and that the result.

7.Keep yourself away from wrong things on social media

Now a days content of social media and using it wrong way putting traders into wrong direction. Social media creators are wrong because they are spreading wrong information by wrong way for getting likes, views and popularity.

They are making money on small scale and showing like they are experts in trading. Showing their content in short form without any proper background, knowledge, qualification and most importantly without any permission and license from SEBI and which is totally wrong but then also new trader getting into this.

If you follow wrong people and sources and how you would get success in trading so control yourself, keep yourself away from this kind of content and focus on valid good sources and save yourself and your capital. Don’t learn from short videos, videos of content creators because they don’t have proper knowledge.

what you can you do?

• Read good books of stock market and trading. Read as much as from good sources like books, internet, articles.
• Learn from qualified experts who have permissions and license.
• Learn yourself by learning and regular practise and learn practise.

Conclusion:

So as a new comer to market or new trader or even you know some basics about market then also you have study these thing before starting your trading journey otherwise you can’t be better trader and not able take advantages of market all time and also you can’t trade in different trading instruments and types which available in market.